Client Successes: Energy & Utilities Industry

Client Type: A key national oil company

Service Provided:
Development and implementation of an M&A driven growth strategy

Client Need:

Had a dominant position in its home market but a limited presence in outside markets, where it believed it needed to grow to prosper. The client approached Kline seeking our support in setting direction and focus to the growth, as well as specific recommendations.

Kline Solution:

Kline's management consulting group worked with the senior management team to ensure a clear and consistent understanding of the Board’s expectations, and used that to frame the focus and key deliverables for the engagement. We analyzed the client’s financial performance and benchmarked them with competitors to develop meaningful comparisons. We evaluated the various business models practiced worldwide, identified critical region nuances, and defined the model for the client in terms of fit and positioning for growth. The specific recommendations jointly developed by the client/Kline team as to the specific regions of focus and the acquisition targets were accepted the Board; one recommendation was taken and several recommended targets have been approached. Client is on its way to its growth targets.

Client Type: A leading regional fuel and lubricant marketer

Service Provided:
Investment planning

Client Need:

With a second-tier position in one of the most important basestock markets in the world, our client believed it needed more capacity to be a viable competitor. The client required our opinion and guidance to drive their investment analysis before committing to building a base oil plant.

Kline Solution:

Our management consulting group evaluated several growth-oriented sectors which had significant alignment with our client’s current business.

Kline's management consulting associates conducted a global analysis of the base oil market, including a business and manufacturing economics assessment, characterization of the current and likely future business and competitive environment, detailed supply and demand forecasts, and technology appraisal. Our analysis affirmed the validity and soundness of the proposed investment, and showed the client would have an important regional cost advantage.

Client Type: A mega-major fuel and lubricant refiner and marketer

Service Provided:
Technology management, competitive intelligence

Client Need:

To strike the optimum balance between in-house and outsourced R&D resources in order to successfully, yet efficiently, drive an innovation-based growth strategy in lubes and fuels.

Kline Solution:

Kline's management consulting group created a focused R&D benchmarking program that identified and analyzed the R&D programs of leading fuel, lubricant and additive company suppliers which provided the critical external benchmarks against which we objectively and accurately compare our client's organization and R&D productivity. We examined the focus of their spend and the processes that the spend supported. These analyses and outputs were combined to define best practices in the business. As a result of our efforts, our client combined activities for improved effectiveness and communication, which allowed them to shutter an R&D facility.

Client Type: A technology-licensing division of a mega-major

Service Provided:
Technology management, customer management

Client Need:

Client has a customer that needed justification for lubricant refinery expansion.

Kline Solution:

Kline's management consulting team evaluated our client’s customer’s current basestock products and the requirements for finished lubricants in one of the largest central European lubricant markets. We also analyzed the demand for API Group I, III and future requirement for API Group II. Kline assisted in educating the mega-major’s technology client on the needs for higher volumes of higher performance stocks. Kline also examined other geographies that could also be outlets for the new volumes of basestock, which our client is now pursuing.

Client Type: Lubricants division of a leading global oil company

Service Provided:
Strategy development and implementation

Client Need:

Answer the question: “Can/how does the consumer lubricants business grow within the vision and strategy of the corporation’s core business?”

Kline Solution:

Kline's management consulting team analyzed the client’s business and technology portfolio from the inside out. The consulting team mapped the regional market spaces and channels presently served, then constructed and analyzed potential adjacencies. Then outlined the available strategic options, including brand acquisition, new channel strategy, and significant changes in brand positioning. Kline lobbied key stakeholders’ support for the plan that was best aligned with the strategy and vision. Once approved, we collaborated with client sponsor to roll out plan.

Service Provided:
Lubricants division of a mega-major

Client Need:

With positions in all three major lubricant segments, the industrial business was lagging automotive and the client wanted to define and implement an alternative business model to ensure the success of industrial lubricants businesses.

Kline Solution:

Kline management consultants worked closely with senior management and strategy process owners to define and structure a vision of the endpoint for the business. Through a detailed market analysis of Brazil, China, Germany, and the United States, Kline determined which were the most attractive, and how well the critical success factors were aligned with our client’s offering and model. Our consultants identified add-on offerings to round out their position and then selected the most attractive segments and realigned our client’s business model to one that would yield the highest potential for return. We pitched our recommendations to the Steering Committee and senior management team. They have since been implemented.

Client Type: The Fleet Card Division of a Mega-Major

Service Provided:
Customer relationship management CRM)

Client Need:

Had a co-branded offering with a major financial institution, but the card and its value proposition were not yielding the desired results; client needed to understand what had to be fixed.

Kline Solution:

Kline management consultants used in-depth market research techniques, and worked with the client team, including business management and the sales forces, to understand what, if any, unique features distributors and targeted fleets saw in the value proposition. The engagement identified problems with the customer-facing aspects of the offer, as well as flaws in the go-to-market approaches. We educated our client, delivered our analysis and recommendations to the team, and were subsequently asked to present our findings to the financial institution to support our client’s negotiating position.